Tata Nano Failure: Case Study

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The key takeaways are that Tata Nano was envisioned as an affordable transportation solution for low income families in India. It used cost cutting measures like plastics and lack of features to become the cheapest car in the world but faced issues with poor quality perception and negative publicity.

Ratan Tata was inspired to create an affordable car after seeing families traveling on scooters unsafely. He wanted to provide a safer transportation alternative.

Tata Motors cut costs by using plastics and adhesives instead of welding and omitted features like AC, power steering to keep the price low. They also benefited from government subsidies and tax breaks.

T A T A N A N O F A IL U R E

CASE STUDY
Company History
The Tata Group

 FOUNDED BY JAMSETJI TATA IN 1868 AS TRADING COMPANY


 FIRST STEEL MILL, POWER UTILITY, LUXURY HOTEL AND INTERNATIONAL
AIRLINE
 BY 2011, 98 COMPANIES OVER 7 SECTORS.
 COMPANY SEEN AS INSPIRED TRUST & A STRONG COMMITMENT TO ETHICS
 BY TATA CODE OF CONDUCT, TATA PROMISED TO IMPROVE THE QUALITY OF LIFE
AND NANO IS A PRIME EXAMPLE.
IDEA GENERATION

“I SAW FAMILIES RIDING AROUND ON SCOOTERS


WITH KIDS STANDING UP AND THE MOTHER
CARRYING A BABY AND SITTING PILLION AND
DECIDED TO DO SOMETHING ABOUT IT. IT STARTED AS
A QUEST FOR AN AFFORDABLE TRANSPORTATION
SOLUTION”.
--RATAN TATA
INTRODUCTION
• The Tata Nano was introduced at the 9th auto expo by Tata Motors in
New Delhi, India on Jan. 10,2008.

• Car delivery to customers started in July,2009.

• Tata Nano is made for medium class family , it is small, affordable


and stylish cars.

• Tata Nano get the title of “World cheapest Car”.


What makes it so cheap !

THE TATA NANO USES PLASTICS AND ADHESIVES RATHER THAN WELDING.

INTRODUCING THE CAR WITH AN ARTIFICIALLY LOW PRICE THROUGH GOVT-


SUBSIDIES AND TAX-BREAKS, OR
USING VERTICAL-INTEGRATION, OR

PARTIALLY USING INEXPENSIVE POLYMERS OR BIODEGRADABLE PLASTICS INSTEAD OF


A FULL METAL-BODY.

IT HAS NO AC, NO POWER STEERING, NO POWER WINDOWS, NO POWER


BELLS AND WHISTLES.
WHAT MAKES TATA NANO SO CHEAP?
3d view of Tata nano
Why Tata Nano Failed?
It got branded as a “cheap car”

r Pe o ple
Poo
Car
The Look Of The Car
Low Price Means Low Quality

 IN INDIA, THERE IS A VERY POPULAR PHRASE IN SOCIETY. “LOW PRICE MEANS LOW QUALITY”.

• ENGINE OF SOME BIKES ARE BETTER THAN NANO ENGINE

• FACES DIFFICULTY IN CASE OF OVERLOADING.

• THE NANO CANNOT BE DRIVEN ON SPEED MORE THAN 70 MPH.

• SMALL TYRES OF NANO MAKE IT DIFFICULT TO DRIVE IT ON ROUGH INDIAN ROAD.


Nagative publicity of the car
Nano
catching
fire
Ch e
Cau ap Ca
ght r
Fi r e

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